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Jebsen and CleanOil Collaborate to Produce High-quality Recycled Lube Oil

Monday, February 09, 2015  
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In support of the government’s promotion of clean energy for China, Jebsen Group and CleanOil Investment Ltd are cooperating to produce high-quality recycled base oil and lubrication oil for industrial and automotive applications.

The two partners are currently building an oil refinery in Gaolan Port Economic Zone, Zhuhai. Taking advantage of CleanOil’s operational and technical expertise and patented oil re-refining technology, the new plant will recycle used lube oil to produce Group II base oil and high-quality lube oil for cars, trucks and industrial machinery. Production is expected to begin by the second half of 2015, with the plant eventually producing 20,000 tons of oil per year.

Jebsen Group will draw on its knowledge of China’s automotive aftermarket and its China-wide sales and distribution network of industrial products in the region to support the new business and meet growing demand for recycled lube oil.

"As a technology innovator, CleanOil is pleased to combine our strengths with Jebsen Group to support China’s green growth. Jebsen’s expertise and reach in the industrial and automotive sectors will help us grow the market for high-quality recycled lube oil to benefit the environment and contribute to China’s continuing economic growth,” said Mr Antony Louis Marden, Chairman of CleanOil Investment Ltd.

At present, around 60-70% of China’s annual lube oil consumption of around 8 million tons is collected for re-processing, but less than 10% of this is re-refined as lube base oil. This percentage is set to rise as the practice of burning recycled lube oil or distilling it into low-grade fuel is phased out. At the same time, soaring private car use in China is contributing to a rise in demand for lube base oil of around 10% per year, which also increases the volume of used oil available for recycling.

Closed loop recycling of lube oil at the new CleanOil plant will efficiently produce high-quality base oil of an industry-accepted standard without causing secondary pollution. This will satisfy market demand for lube oil while reducing reliance on imported base oil. It will also help to prevent used oil being dumped, thereby avoiding possible pollution of land and waterways or reused in a manner that can contribute to poor air quality.

Said Mr Hans Michael Jebsen, Chairman of Jebsen Group,“Since over a century, Jebsen has served the evolving Chinese markets and consumers. Jebsen firmly believes in the continuing growth of China and is investing in businesses that brings the Chinese consumers a healthier and more varied and fulfilling lifestyle. Environmentally sound recycled lube oil represents a valuable addition to our portfolio of products and the business is an excellent fit for our expertise as a leader in China’s industrial sector for over 100 years. We are delighted to partner with CleanOil to offer a highly efficient and environmentally friendly way to reclaim and reuse spent oils. By establishing this new business and by developing the national market for recycled lube oil, we are furthering our commitment to a greener and more sustainable China. ”

As a socially responsible company, Jebsen Group works with partners and employees to support energy saving, waste reduction and ensure compliance to environmental laws.

In 2009 Jebsen established a carbon emissions objective to reduce carbon intensity (carbon emissions per unit revenue) by 20% by 2013. Despite operating a growing company, Jebsen reduced its carbon intensity by 22% by 2013. It has also invested in carbon-offsetting projects and purchased carbon credits to now achieve carbon neutrality for a second consecutive year.

Products produced by Jebsen Group and its joint-venture companies also contribute to environmental conservation. For example, balancer shafts produced by Mitec-Jebsen, a Jebsen joint venture founded in 2007, reduce fuel consumption; oil pumps produced by Jebsen-TCG, which was set up in 2011, increase fuel efficiency, reduce carbon emissions and extend engine life; and fuel pump housings manufactured by MSR-Jebsen, which was established in 2012, enhance fuel efficiency.

About Zhuhai CleanOil Petrochemical Co., Ltd

With an oil refinery under construction in Gaolan Port Economic Zone, Zhuhai CleanOil Petrochemical Co., Ltd is a joint venture of CleanOil Investment Ltd and Jebsen Group. It will use patented Oil Re-Refining Technology from CleanOil to recycle used lube oil to produce Group II base oil and high-quality lube oil for cars, trucks and industrial machinery in China.

About CleanOil Investment Ltd

CleanOil possesses technology to process used oil into premium base oil minimizing environmental impact without compromising on performance. Using its patented Oil Re-Refining Technology (“ORT”), CleanOil produces stable base oils that meet the highest international petroleum standards, while maintaining a 95-97% recovery rate and zero secondary pollution, re-engineering oils surpassing even the standards of many virgin oils. For more information, visit www.cleanoil.com.hk


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